During the weekend, thanks to increased interest Bitcoin moved back up over $1,100, reversing the downward trend that took over last week’s trading. Things are once again looking good as the market is seeing high trading volume while the overall mood is in favor of those looking to see the price keep growing.
In other interesting news, while the debate about Bitcoin’s future course goes on, a new solution called Tezos has been proposed by tech-entrepreneur couple the Breitmans, the Wired reports. Namely, they suggest making future Blockchain debates more democratic by dispersing the power to vote on any changes over more than just the present group of miners.
In short, Tezos suggests selling tokens to users throughout the world which will automatically allow them to help process transactions and the right to propose and vote on changes in the network. Thus, future votes will be more democratic and open to any concerned Bitcoin user. An interesting proposal, no doubt, but whether it will gain enough support remains to be seen.
Bulls Take over Trading Market
Since our last update on Friday, the price of Bitcoin started a steady climb after the bearish pressure from last week began to disappear. The lowest point during the time was hit on Saturday, when the price reached $1078.81, while the highest was hit today morning, when the value reached $1,134.08.
The trading volume charts show a heavy increase in interest as the volume started surging yesterday evening to now amount to $690,572,000. A similar uptick is evident in the market cap, which is likewise up and at $18.5 billion. Since the volume is almost 5 times its usual value, you can expect the price to keep changing according to the market trends.
Our technical analysis shows an overall buying mood, as long-term charts show 8 out of 12 oscillators and 11 out of 12 moving averages are in the buy zone. However, the SMA 100 is below the SMA 200 on this time-frame, suggesting less resistance to the downward course, so don’t expect a smooth ride if sellers return.
The overall conclusion is that the price is headed for more growth over $1,140 as long as the buying trends continue. But if the price rolls below $1,100, we will likely see a further drop to previous lows.
Japan Officially Recognizes Virtual Currencies
In Japan, Bitcoin has finally become an officially recognized mainstream currency, just like regular fiat money, according to Nikkei Asia. As the news update states, a new law went into effect this April 1st that categorizes the cryptocurrency as a legal tender in Japan, just in time when a new fiscal year begins, opening up new challenges for companies in regards to how to approach the implementation.
Receiving official recognition is positive news for both local and global Bitcoin users, as having the freedom to buy and sell Bitcoins will also likely to lead to more interest in the cyptocurrency and consequently better prices. On the other hand, exchanges and other companies dealing with Bitcoin now have to find a way to comply with the existing financial and banking regulations.
By default, since Bitcoin is now recognized as a legal tender, any exchange platforms will be expected to adhere to the Know Your Customer and anti-money laundering provisions, but also comply to the accounting rules set by the government. Luckily, the Accounting Standards Board of Japan announced they will issue a new framework for treatment of virtual currencies(expected in six months), so it might be some time until Bitcoins are fully implemented in Japan.